APN Industria Valuations reflect strong Market

7 May 2021

The APN Industria REIT, today announces the draft valuations for 30 June 2021 which reflect the strong market conditions in the industrial sector.

Valuations were undertaken over 17 of the 23 industrial properties, with values increasing by 11.9% or $64.3 million. The average cap rate compressed by 51 basis points, and the weighted average cap rate across the portfolio is now 5.83%.

Full details relating to specific individual property valuations will be provided as part of the FY2021 results. See key changes in table below.

The valuation outcomes equate to approximately 30 cents of Net Tangible Assets (NTA) per security, an increase over the last reported NTA (31 December 2020) of 10.3% to $3.18 per security.

Commenting on the valuations, Alex Abell, APN Industria Fund Manager said: “These outcomes reflect the
quality of our portfolio, which is now valued at over $1.05 billion, and remains well positioned to benefit from
a strengthening market, in addition to various asset management initiatives that will further improve income
visibility and drive value.”

Our Views

The increase in valuations is no surprise given the extent of cap rate compression seen in the industrial sector. Our data from RESourceData shows that the Weighted Average Yield in the industrial markets dropped to 4.5% so far in Q2, 2021, predominantly due to the Blackstone portfolio deals completed last month. (see chart below).

APN Industria REIT remain on our Top Picks List

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